Product-Market-Fit Insurnace Startup


(Jonathan) #1

Hi,

What would you define as product-market-fit for an insurtech carrier? how would you measure it?

A couple of things to keep in mind:

  1. An insurance carrier needs to be licensed (and fully funded) to operate and sell its first policy.
  2. Could take a few years to get enough insurance claims data to optimize underwriting model (claims take time to be reported and develop).

I guess basically what I’m asking is how this - https://a16z.com/2017/02/18/12-things-about-product-market-fit/ fits on insurance.

Thanks!


(Alin) #2

I mean, that’s pretty specific, if you’re in that industry, you should know best what the market is like and what needs aren’t covered, no?


(Paul Scola) #3

Just like any other product, conversion, CAC and time to close would be initial indicators of whether you are on a good path. Profitability is difficult with insurance and that component does take more time - but you will have feel. We just did this in the commercial space with a pretty esoteric risk and you could tell early on that that the product was great in concept but only with the small group of customers who knew the risk. The majority of the market was not interested in a stand alone product.